Accra, September 23, 2019; The attention of the
management of the Jospong Group of Companies (JGC) has been drawn to a
publication by the Daily Graphic newspaper on Friday September 20, 2019
and also in other media platforms on the abrogation of the Great
Consolidated Diamonds Ghana Limited (GCDGL) contract by the Divestiture
Implementation Committee (DIC) due to the GCDGL’s alleged inability to
meet the contract terms.

We wish to state that the facts contained in the publication are not
accurate and are a misrepresentation of the terms of the agreement
executed between the parties.

Background

JGC took ownership of GCDGL from government’s Divestiture
Implementation Committee (DIC) in the year 2011. At the time of the
acquisition, the company had been closed down with its premises in a
dilapidated state with obsolete machinery and equipment.

Upon the assumption of ownership of the mine in 2011, and immediately
after the execution of the Agreement between DIC and GCDGL, substantial
investments were made in an attempt to revive the mine and make it
commercially viable.

Subsequently, GCDGL has also focused on meeting the necessary
regulatory, engineering and restructuring works necessary to achieve
this objective. We wish to state that all due processes, guidelines and
regulations provided by DIC to regulate the said transaction were duly
followed.

Consequently, we hereby address the pertinent issues raised in the publication as follows:

1. Abrogation of contract by Government – Following
the acquisition of the mine, GCDGL and the JGC have made several
attempts to make the mine commercially viable, albeit not yet entirely
successful. This led to a series of communication with the DIC with the
aim of reaching a mutually satisfactory direction on how to proceed with
same.

Despite these attempts, the Government acting through DIC by a letter dated 9th April 2019 purported to abrogate the agreement between the parties
without following due process. GCDGL through their lawyers drew the
attention of DIC’s lawyers to the illegality of the intended action of
the DIC, and proceeded to issue a Writ of Summons and an accompanying
Statement of Claim to protect the interest of the company.

It is therefore unfortunate that Government, after filing a Statement
of Defense in the aforementioned suit, proceeded to take over the
management of the company without recourse to the law and tenets of good
governance.

2. Payment of Consideration-

GCDGL, has since the acquisition made payments on
account, and through its principal shareholder been in dialogue with
Government with the aim of settling the outstanding liability by way of a
set-off from Government’s liability to the shareholder. Government is
yet to respond to this proposal despite repeated overtures.

3. Refurbishment of the Akwatia Mine and Hospital

Management states that since the acquisition of the mine, millions of
dollars have been invested into the mine which had been completely run
down at the time of acquisition. In the development plan to revive the
mine to full scale operations, we have undertaken numerous feasibility
studies and development activities amounting to over 20 million USD.

The GCDGL and its strategic partners have reached an advanced stage
to execute a 50 million USD investment to operationalize the mine of
which a memorandum of understanding has been signed.

4. Illegal and Hostile takeover of Mine

The action by SIGA is illegal, unconstitutional and regrettable in a
nation that is governed by the tenets of democracy. On Thursday 18th of September 2019, Executives of SIGA assisted by the BNI and military
apparatus illegally entered GCDGL premises, took over the security of
the mine, closed down all the offices, seized staff vehicles and mobile
phones, threatened staff, and closed down the only hospital which serves
the community without regard for the patients who were receiving
treatment. We wish to state that at all times, due notice was not served
on the company.

Their conduct created pandemonium in the rather peaceful community
and deprived the community of the very livelihood the facility had given
them over these few years. Consequently, the appointment of the Interim
Management Committee by SIGA is void and has no legal basis.

We emphasize our position that the conduct of SIGA amounts to total
disregard for rule of law and good governance. As a responsible
company, we reiterate the fact that the matter is presently before a
court of competent jurisdiction and we will, therefore, wait for the
final determination of the matter.

The management wishes to assure all its stakeholders including the
chiefs and people of Akwatia and the workers that it is doing everything
possible to resolve this matter using the appropriate legal remedies.

The Jospong Group of Companies currently employs over 50,000 people
and remains committed to continued contribution to national development
through the provision of jobs.